Collecting for flood cleanup can take time
Act fast, be prepared when filing an insurance claim
Standing outside an RV at the top of the South Shore subdivision in northern St. Charles County, he moved to sink into a chair and take a swig of his drink.
"They're not doing anything," he said, shaking his head.Collier was referring to his insurance company.
Last Wednesday marked three weeks since he first called his local agent to report the flood damage to his home. He said he was given another number, waited through several automated recordings and still is waiting to receive paperwork company representatives said they would send.
Two blocks down at the corner of Caroline Drive and Harbor Grove Drive, Chuck Williamson moved past the contents of his home that were stacked on his driveway and pointed to his neighbors. He, a resident of the area for nearly 40 years, is familiar with the insurance process after a flood, Williamson said; but his neighbors have had a string of problems, causing them unnecessary aggravation and stress.
"If that's what you have to do, that's what you have to do," he said of the cleanup. "But don't let them come down here and crucify us because of it."
Across the street, Priscilla Wilson watched a truck pull out of her driveway and headed back into the front room of her home, now stripped of insulation. One week ago, an insurance representative inspected her home and concluded it had $27,700 worth of flood damage. A half-hour later, a county inspector said the damage totaled $69,000, and her home was condemned. Now, Wilson said, she's unsure whether she will be able to collect enough money to afford the repairs to her home that county officials demand.
"And there's not a whole lot you can do," she said. "It's like you're stuck with this bureaucracy."
Many homeowners agree - dealing with insurance companies can feel overwhelming. And after last month's flooding, the process to file a claim can only seem worse. While many residents have been through a flood before, first-timers and veterans still are sent to 800 numbers, hear conflicting answers to their questions or simply don't know who to talk to.
Consequently, Dean Ownby, an insurance specialist for the Federal Emergency Management Agency, offers this advice: stay informed and act fast.
FEMA administers the National Flood Insurance Program, which makes federally backed flood insurance available to homeowners, renters and business owners in communities that participate in the program. The program also legally requires homeowners of property within a 100-year floodplain to have flood insurance in order to get a federally secured mortgage.
Municipalities wishing to participate in the program also must pass ordinances requiring certain regulations, said Wayne Anthony, director of community development for St. Charles County. For example, he said, county officials have passed ordinances regulating development within floodplains, and county inspectors also must conduct damage assessments when a flood occurs. In doing so, inspectors determine whether a property is fine, has damage that totals less than 50 percent of its value, or has damage that totals more than 50 percent of its value. Owners must make repairs, or, if their property is deemed inhabitable, they can either remove the structure or elevate it to one foot above the base flood level, Anthony said. However, he said, insurance companies will make their own assessments.
But, Ownby said, FEMA inspectors do not determine the amount of damage a property owner can collect on a flood claim; if they do inspect a property, they likely are conducting one of what might be many assessments to get an idea of the overall flood damage to an area. Any insurance adjuster coming to a property would typically be the same person that would handle a homeowners insurance claim, Ownby said.
That doesn't mean all insurance companies follow the same procedures. FEMA guidelines determine the rates of flood policies, and insurance companies enter into agreements to write the policies for their customers. However, FEMA allows individual insurance companies to use their "best practices," Ownby said, meaning they might use their own adjusters or independent adjusters.
For example, local State Farm Insurance agents send their own adjusters to a home, process the paperwork -following steps laid out by FEMA - submit the information to the federal government and later are reimbursed by the federal government, said State Farm spokesman Jeff Davis. A client would only fill out a different form for a flood claim, he said.
Bob Davis, an American Family Insurance agent in St. Charles, said American Family clients who contact their local agents will simply be given the 800 number to a flood claims center. Farmers Insurance agents can turn claims in for clients, but the federal government takes it from there, said Mark Arnold, a Farmers Insurance agent in St. Charles.
Local agents are involved in other ways, Davis said; they often are kept up to speed on how fast floodwater is rising and make sure homeowners are familiar with their policies.
No matter what, the No. 1 thing any property owner should do after a flood is contact their local agent as soon as possible, Ownby said. After that agent informs them of their insurance company's procedure, he said, flood victims should consider some other important tasks: Start cleaning up, itemize possessions, take pictures of anything damaged by floodwater and work with adjusters, such as by getting a repair estimate from a trusted local contractor.
Whatever they do, flood victims shouldn't sit around, Ownby said.
"They'll have to do (these things) sooner or later, and it's easier to start doing it as soon as you can," he said.
Tips to remember when filing a claim:
> If possible, photograph the inside and outside of the premises, showing any damaged property and the height of the water.
> Call your flood insurance agent. A Notice of Loss form will be prepared and an adjuster will be assigned to you.
> Separate the damaged from the undamaged property and put it in the best possible order for the insurance adjuster's examination.
> When the adjuster visits, let him or her know you need an advance or partial payment of loss. Good records can assist your insurance companies and the National Flood Insurance Program in giving you an advance payment.
> Damaged property that presents a health hazard or may hamper local cleanup operations should be disposed of. Be sure to adequately describe and photograph discarded items so they are included in documentation.
> Good records speed up settlement of your claim. Compile a room-by-room inventory of damaged goods, including the manufacturer's name, dates and places of purchase and prices. Try to locate receipts or proofs of purchase, especially for major appliances.
Remember:
> Flood damage is not typically covered by a homeowners insurance policy.
> A flood insurance policy takes 30 days to go into effect after it is purchased.
> To stay covered, you must renew your flood insurance policy each year.
> Federal disaster assistance often comes in the form of a low-interest loan to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the president formally declares a disaster.
> Almost 25 percent of all flood insurance claims come from areas with low to moderate flood risk. You may qualify for the Preferred Risk Policy, a lower-cost flood insurance policy that provides content coverage beginning at $39 per year and building contents coverage beginning at $119 a year.
> Many private insurance companies also offer Excess Flood Protection, which provides limits over and above those of the NFIP.
Questions to ask your flood insurance agent:
> Can you confirm which flood zone I live in?
> What exactly will be covered in case of flood damage? What won't be covered?
> How will my premium costs be affected by choosing coverage for building only, contents only or building and contents?
> How will my premium costs be affected if I choose a higher deductible?
> What is the policy fee?
> Are there additional expenses or fees I should be aware of?
> What is covered by Replacement Cost and what is covered by Actual Cash Value only?
Source: www.floodsmart.gov
